SPX yearly update

The monthly chart of the SPX shows one obvious and scary development for the bulls who declared in the 2012 Barons roundtable the market would rise 12 % next year. First time in decades we will have the death cross over of the monthly 50 and 200 MA entering the Japanese cycle of everlasting dropping markets – well to put it into perspective Japan is dropping now for 22 years and that can easily happen to the SPX although up to now it has hold relatively high grounds carrying a 4 digit value. Despite all the bullshit stories of the mass media that markets are utterly cheap with phony profits close to 100$ for the SP 500 which is completely pathetic as the accounting standards have been raped in gangbang mode and the 25% of financial distribution are not worth even 1 dime the remaining 75% of corporate earnings need to be discounted going forward as the depression is about to become official soon despite all the governments phony statistics as part of the growth and so called earnings is nothing but hidden inflation and in a context of a depression within a completely broken global financial system the real PE rather be 6-8 times a more realistic  60 Dollar earnings the fair value is rather around 400 for the SPX and the chart does exactly imply that we are heading there. Since right now every month a top high month from 2007 drops out its just a matter of a few months for the market to make that death cross and head below the 1000 in a substantial way. The FED will come with their final bullet soon and announce QE3  early 2012 but that will only bring a brief rally which should start around the 25th DEC (could be even late this week) as a huge window dressing operation has started which concentrates on bonds right now which are more crucial to the balance cheats of banks but the fundmanagers will join soon to raise stock levels as astro patterns give a very benign New Moon at the 25th DEC ( Merry Christmas energy will be around for the holdiday season while america will be in a dramatic budget fight which will be resolved around Christmas. We have not had that negative cross in decades so something very gloomy is about to happen to the markets which are anyway on these levels because of the insane money printing of the FED and is nothing but inflationary levels.


~ by behindthematrix on December 19, 2011.

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